Abstract

National Aluminium Company (NALCO), Damanjodi is a govt. owned Navaratna company located in the major bauxite mining district of Odisha. The vast majority of the local population around NALCO are SCs and STs and most of them are employees of the company. On the contrary, it has a displacement effect on the tribals and creates water, air and sound pollution. Considering the above, this paper attempts to explain the significance of industrialisation and its impact on the local economic development through a case study in three peripheral villages of NALCO industrial area. In view of the specificity of the topic, we relied on primary data. The relevant information has been elicited from 100 residents of three surrounding villages of NALCO namely Kapsiput, Analabadi and Goudaguda through a special questionnaire. The findings reflect both positive and negative effects of mining, refinery, aluminium smelter and industrial effluents of NALCO on human and ecological health, pattern of livelihood, income, education and settlement of local population etc. and, finally, it suggests alternatives and improvements to prevent environmental and health degradation and, to actively promote education, health and economic development around industrial sites.

Keywords

Industrialization; Mining; NALCO; Socio-economic
impact; Development

Introduction

The industrial development provides better job opportunities
to the people and improves the overall infrastructure of the region.
On the contrary of these positive impacts, there are some negative
impacts also. Industrialisation affects the traditional local economic
pattern, creates health hazards by polluting the environment and alters
the demographic orientation by inviting skilled labour from outside
followed by income inequality among the people. Related to this, there
is mining activity which may generate employment but on the other
hand causes instability of the ground surface and causes pollution
(contamination of soil, groundwater and surface water by chemicals
from mining processes).

Koraput is the major bauxite mining district of Odisha and produces
98.82 percent of the state’s total production. National Aluminium
Company (NALCO), Damanjodi is a govt. own navaratna company
and called as the pride of Odisha located in the major bauxite mining
district of Odisha (Panchpatmali bauxite deposit of Koraput). The vast
majority of the local population around NALCO are ST’s and SC’s and
most of them are employees of the company. On the other hand, it
has a displacement effect on tribal’s and also creating water, air and
sound pollution. Considering the above, this paper attempts to explain
the significance of industrialisation and mining and its impact on the
local economic development through a case study in three peripheral
villages of NALCO industrial area.

Background of the Study

The result shows that affected people were not able to get back
their livelihoods as a result of cash compensation policy. As the job
allocations were confined to one member per family, reducing others as
mere dependents. Other infrastructural facilities promised by NALCO
were also not adequately provided. Stanley gives a clear account of
the displacement, compensation and rehabilitation in the NALCO
Bauxite Mine and Plant at Damanjodi. According to him, 597 families
in 254 villages got displaced, out of which 42.55 percent are tribal. Out
of the total acquired land of 10,058.76 crores, 69.52 percent was used
for the construction of the plant followed by the township. Stanley
also examined the compensation package given by NALCO. Out of the displaced families, 74 percent were rehabilitated and 59 percent
received jobs in compensation. Compensation per acre of land was
Rs.2000 and compensation per tree was Rs.100. However, there was no
compensation for the Common Property Resources (CPRs). According
to him as there was no scarcity of land in the 80s, NALCO should have
adopted a land to land policy.

In the villages located in the vicinity of Aluminium smelter
plant discharge hundreds of tons of fluoride in to the environment
contaminating the ecosystem around the plant. Metallic shiny
aluminum powder dust can be seen deposited everywhere in the
villages, i.e., on the roofs, on walls, on trees and vegetation and in
wells of drinking water. The villagers had no option, but to resort to
the NALCO polluted rivulet for their drinking water requirements
by digging shallow puddles near the stream. Gas and fumes emitted
from smelters of NALCO are causing damages to hundreds of acres
of paddy fields with standing crop getting burnt (dried and shriveled).
As a policy, NALCO started allocating 0.5% of its net profit every year
for Periphery Development (PD) activities, since 1998-99. Till 2011-
12 fiscal, NALCO has allocated Rs.157.56 crore under PD programme,
which is 2% of the Company’s net profit. But the NALCO, with its
huge profit base, could have done much better to these marginalized
people. Impact assessment of industrial and mining activities on
the socio-economic life of local people is an important tool, help
decision-makers, make choices about alternatives and improvements
to prevent environmental, health and economics degradation and, to
actively promote education, health and economic development around
industrial sites. Hence, in the present paper, an effort has been made
to assess the impact of mining and industrialisation in three selected peripheral villages of NALCO industrial area.

Review of literature

Stanley [1] explained how displacement in the NALCO area changed
the occupational pattern of the local people and led to the division of
society into social groups based on class, caste, tribe and sex. According
to the study, mining added to the process of marginalisation. Women's
economic status deteriorated as they were forced to stay at home and
were no longer considered as an economic asset. Aroca's [2] study
shows that mining is the most important sector of the Chilean II region.
The main linkages of the mining sectors are with the three sectors with
the highest backward and forward linkages; when these linkages are
considered along with the level of production from mining, mining
emerges as the most important sector. Maconachie [3] investigated
the economic, social, cultural, health and environmental impacts of
medium and large-scale mining operations on local communities.
They compared the developed countries (Canada and Spain) with the
developing countries (Latin American countries of Bolivia, Chile, and
Peru). They concluded that the relationship between mining operations
and local communities is undergoing a largely positive evolution. Bury
[4] examined how mining activities are affecting land-tenure patterns
and livelihoods in the Cajamarca gold region of Peru. Gold mining
activities have contributed to significant shifts in land-tenure patterns,
land-tenure institutions, and land use values throughout the region.
Livelihoods are being transformed as household access to economic,
human, natural, and social resources are rapidly changing in the areas
surrounding mining operations.

Kitula [5] reported the socio-economic and environmental
impacts of mining in Geita District, Tanzania. These impacts include
land degradation, damage to water quality, pollution, and harm to
livestock and wildlife biodiversity. Krishnaswamy et al. [6] compared
historic data with recent data and found out that mining and associated
activities in Kudremukh National Park are the greatest sources of
sediment entering the Bhadra River, which now carries considerably
more sediment than before the mining activity started damaging
the river ecosystem and disrupting downstream water resources.
Khatua and Stanley [7] studied the lifestyle and livelihoods of affected
communities, land use patterns, impact on natural resources, and
climate change in the context of mining. They focused on NALCO and
its relationship with resource exploitation.

Objectives

1. To study the impact of NALCO on the socio-economic profile of
the peripheral villagers of Kapsiput, Analabadi and Goudaguda.

2. To assess the environmental impacts and challenges of NALCO
mining.

Data Sources and Methodology

This study is based on primary data and collected through a specific questionnaire. The study area has been divided into mining zone,
refinery zone, and Ash and Red Mud Pond (ARMP) zone and one
village from each zone namely Kapsiput, Analabadi and Goudaguda
have been selected. Data from 100 samples were collected in view of the
socio-economic effects of NALCO industrialisation and mining. The
criteria for selection of villages are more tribal population, pollution,
crop loss, approachable, low compensation, health hazards, etc. To
assess the positive and negative impacts of mining and industrialisation,
Social Impact Assessment (SIA, also called Social Impact Analysis) has
been used. It refers to the processes and procedures for understanding
and managing the social consequences of development activities
Lahiri-Dutt, Nair and Dowling [8].

Socio-economic impact analysis of the households

In this section, household-level analysis of the various issues,
namely demographic features, housing particulars, income and
expenditure particulars, and access to common property resources,
basic infrastructure available in the villages and NALCO's role in
the provision of basic facilities are presented. Besides the possible
impacts of NALCO industrial and mining activity on the financial
capital (household income), physical capital (land, house, livestock,
and other physical assets), human capital (health and literacy), social
capital (displacement and social network), and natural capital (water,
air and noise) have been analysed through the following tables. This
analysis is useful to understand the effects of the NALCO Project on
the communities. Further it will be clearer to know whether or not
the project has made significant contribution to the livelihoods of the
people affected by the company.

In terms of the social composition of the households in the mining
area, ST households are predominant (97% in the mining zone/
Kapsiput village). Similarly, in the refinery area/Analabadi village
also ST HHs (51%) are predominant. In the ARMP zone/Goudaguda
village, the proportion of HHs in the 'Others' category (67%) [9] is
predominant in as maximum people belongs to ‘Gouda’. There is a mix
average of males and females in all the three villages (Table 1).

Area

Gender Distribution

Caste Distribution

Male

Female

Total

SC

ST

OBC

Others

Total

Mining
(Kapsiput)

51

49

100

3

97

0

0

100

Refinery
(Analabadi)

51

49

100

13

51

14

23

100

ARMP
(Goudaguda)

52

48

100

10

3

20

67

100

Source: Author’s own survey.

Table 1: Demographic features of sample households (In Percentage).

The data on the housing particulars show that in the mining zone,
all the HHs (100 percent) of Kapsiput village live in semi-pucca houses.
It is significant to know that very few HHs in the mining area have
pucca houses. In the refinery zone, a large majority (83 percent) of
the Analabadi HHs live in semi-pucca houses. The ARMP area is also
dominated (88 percent) by semi-pucca houses. On the whole, it may
be observed that in all project areas, a large majority live in semi-pucca
houses, while very few HHs live either in pucca or thatched houses
(Table 2).

Type of House

MiningZone
(Kapsiput)

RefineryZone
(Analabadi)

ARMPZone
(Goudaguda)

Thatched

0

1

7

Semi-Pucca

100

83

88

Pucca

0

16

5

Grand Total

100

100

100

Source: Author’s own survey.

Table 2: Housing particulars of the sample HHs (In Percentage).

Ration cards give poor households a sense of food security, for they
ensure a minimum quantum of basic food items at subsidized rates. The
data regarding the HHs possessing ration cards reveal that a substantial
number of HHs possesses pink cards (74 percent in the Kapsiput
village and 72 percent in the Goudaguda village). It is surprising that a good number of HHs (21 percent in the Kapsiput village; 58 percent in
the Analabadi village; and 20 percent in the Goudaguda village) do not
have ration cards at all. Further, only a small proportion of the HHs
possesses white cards, which give poor households most subsidized
provisions (Table 3).

Area

No Card

White

Pink

Anthyodaya

Total

Mining
(Kapsiput)

21

5

74

0

100

Refinery
(Analabadi)

58

14

26

2

100

ARMP
(Goudaguda)

20

5

72

3

100

Source: Author’s own survey.

Table 3: Households having ration cards (In Percentage).

The data on educational status of the sample households indicate
that illiterates are still large in number among both males and females.
As compared to males, female illiterates are much more in number
in all regions of the bauxite project (63 percent in the mining zone;
50 percent in the refinery zone [10], 61 percent in the ARMP zone).
Secondary school literacy is slightly better among males than females
(24 percent in the mining zone; 30 percent in the refinery zone; 19
percent in the ARMP zone) [11]. It is further observed that literacy
achievement up to higher secondary and graduation level is extremely
poor. In the absence of the necessary literacy skills, employment
opportunities in the factory are scarce. Hence, most households are
engaged in non-skilled, casual, and contract jobs (Table 4).

EducationalStatus

MiningZone
(Kapsiput)

RefineryZone
(Analabadi)

ARMPZone
(Goudaguda)

Male

Female

Male

Female

Male

Female

Illiterates

38

63

31

50

24

61

Below Primary

10

15

11

20

13

21

Primary

25

9

18

4

33

12

Secondary

24

8

30

23

19

4

Higher Secondary

1

5

9

3

9

2

Graduation and Above

2

0

1

0

2

0

Total

100

100

100

100

100

100

Source: Author’s own survey.

Table 4: Educational status of the households (In Percentage).

The various economic activities of the individuals of the sample
households reveal that the members are engaged in diverse occupations
in all the regions. The analysis of economic activities of the persons
reveals that agriculture is still the most predominant activity among the
population in all the regions of the NALCO project (in the mining zone,
62 percent of the people have agriculture as their main occupation,
followed by contract wage labour under NALCO at 34 percent).
However, in the refinery areas, although agriculture is a significant
economic occupation for 37 percent of the people, permanent
employment with NALCO is considerable as it is the main occupation
for 28 percent of the members in the refinery area, followed by NALCO wage/contract employment for 23 percent of the population. This
picture is more or less similar also in the ARMP area, except that there
is a slight decline in the proportion of permanent employment with
NALCO (16 percent) and NALCO contract employment (15 percent),
as shown in Table 5.

Occupation

Mining Zone
(Kapsiput)

RefineryZone
(Analabadi)

ARMPZone
(Goudaguda)

Male

Female

Total

Male

Female

Total

Male

Female

Total

Agriculture

22

40

62

15

22

37

23

35

58

Wage Labour

1

2

3

3

3

6

4

5

9

NALCO Employee

0

0

0

26

2

28

16

0

16

NALCO Contract Labour

30

4

34

19

4

23

14

1

15

Others

1

0

1

4

2

6

0

2

2

Total

54

46

100

67

33

100

57

43

100

Source: Author’s own survey.

Table 5: Economic activities of the individuals (In Percentage).

Possession of livestock gives incremental and additional income to
the rural families, which is very common. In the mining zone, nearly
half of the households (57%) own livestock and the rest (43%) do not
possess any livestock. In the refinery zone a slightly lesser number
of households own livestock (31%), while the remaining (69%) do
not have any livestock. In the ARMP region, about 55 percent of the
households own livestock, while the remaining do not own livestock
(Table 6).

Answer

MiningZone
(Kapsiput)

RefineryZone
(Analabadi)

ARMPZone
(Goudaguda)

Yes

57

31

55

No

43

69

45

Total

100

100

100

Source: Author’s own survey.

Table 6: Households having livestock in the study area (In Percentage).

The sample households were asked about their food security during
a typical year in order to estimate the extent of their food security in
a year. Majority of the households (94 percent in the mining zone;
95 percent in the refinery zone; 100 percent in the ARMP zone)
expressed that they have food security for 6-12 months in a year. Some
households (6 percent in the mining zone and 5 percent in the refinery
zone) have some surplus to sell in the market, besides meeting their
domestic needs (Table 7).

Zone

Up to 6 Months

6-12 Months

Surplus to Sell

Total

Mining
(Kapsiput)

0

94

6

100

Refinery
(Analabadi)

0

95

5

100

ARMP
(Goudaguda)

0

100

0

100

Source: Author’s own survey.

Table 7: Food security (In Percentage).

It is a generally known fact that in rural areas, most of the
households spend a large part of their income on food, and very
less goes to non-food items in subsistence conditions. As the income
of the rural households expands, their expenditure on non-food itemsespecially
on health, education, recreation/entertainment, etc., will also
grow. From this perspective it is observed that in our study villages
around 60 percent of the expenditure of the sample households across
all the regions, except in the refinery zone, is spent on food followed
by expenses on recreation. In the refinery zone, 47 percent is spent on
food and 33.5 percent on recreation. Sadly, the expenditure on health
and education is not substantial across the regions of the company
(Table 8).

Qualitative assessment was made in the project area, based on
which the health status was categorised as 'excellent', 'good', 'fair', and
'partial'. A large majority of them have expressed that their health status
as 'good' (84% in the mining zone; 67% in the refinery zone; 53% in the
ARMP zone) followed by 'fair'. Very less number of HHs has expressed
their health status as 'partial' (Table 9).

Zone

Excellent

Good

Fair

Partial

Total

Mining
(Kapsiput)

0

84

13

3

100

Refinery
(Analabadi)

0

67

29

4

100

ARMP
(Goudaguda)

0

53

45

2

100

Source: Author’s own survey.

Table 9: Household health status (In Percentage).

Health problems in the project area include asthma, skin rashes,
breathing problems, blood pressure, joint pains, heart problem, gastric
problem, diabetes, typhoid, etc. The data on ailments and related
treatments of the sample households show that some HHs did face
acute ailments for which treatment was taken. The data on source of
treatment reveal that government hospitals are the chief source (56
percent) in the mining area. In the refinery zone and ARMP zone, the
hospital run by NALCO (42%) was the principal source of treatment
(Table 10).

Illness Type and
Hospitals

Chronic

Acute

Others

Govt.

Pvt.

Traditional

NALCO

Govt. and Pvt.

Mining
(Kapsiput)

5

87

8

56

15

7

0

22

Refinery
(Analabadi)

17

77

6

13

18

4

26

39

ARMP
(Goudaguda)

5

76

19

14

12

6

42

26

Source: Author’s own survey.

Table 10: Nature of illness and source of treatment (In Percentage).

The views of the sample households on the influence of the plant in
the project area shows that only a small proportion mentioned that it
is beneficial (11 percent in the mining area and 7 percent in the ARMP
area). A large majority of them expressed that there are no problems
with the plant/mining (75 percent and 82 percent respectively in the
mining and refinery zones; and 38 percent in the ARMP zone). There
are a few households in the areas of mining and refinery and 52 percent
of the ARMP area viewed that the influence of the project as 'partially
hazardous' (Table 11).

Area

Beneficial

Partially Helpful

No Problems

Partially Hazardous

Total

Mining
(Kapsiput)

11

0

75

14

100

Refinery
(Analabadi)

0

10

82

8

100

ARMP
(Goudaguda)

7

3

38

52

100

Source: Author’s own survey.

Table 11: Views on existence of plant and its influence (In Percentage).

With regard to the improvement in literacy level compared to the
pre-mining situation, the majority of the households across all the
regions expressed that there is improvement (97 percent and 93 percent respectively in the mining [12] and refinery zones and 90 percent in the
ARMP zone), as better schooling infrastructure has been created both
by NALCO as well as by the Government of Odisha (Table 12).

Area

Yes

No

Total

Mining
(Kapsiput)

97

3

100

Refinery
(Analabadi)

93

7

100

ARMP
(Goudaguda)

90

10

100

Source: Author’s own survey.

Table 12: Improvement in literacy rate after mining (In Percentage).

The income details of the sample households from various sources
clearly show that NALCO wage/contract salaries (73.5 percent in the
mining zone; 87 percent in the refinery zone and 85 percent respectively
in the ARMP zone). Income from agriculture, wage works, and other
sources is not very significant. The average monthly income of the
sample households reveals that those in the refinery zone have highest
income at Rs.18,235, followed by ARMP zone (Rs.10,162) and mining
zone (Rs.5949) (Table 13).

Area

Agriculture

NALCO Wage/
Contract Salaries

Wage Workers

Others

Total

Average Monthly
Income (Rs.)

Mining
(Kapsiput)

18.5

73.5

3

5

100

5,949

Refinery
(Analabadi)

6

87

2.5

4.5

100

18,235

ARMP
(Goudaguda)

8

85

3

4

100

10,162

Source: Author’s own survey.

Table 13: Details of household income from various sources (In Percentage).

The data on the houses allotted to the sample households by
NALCO clearly show that only in the refinery zone (73 percent) and
ARMP zone (40 percent) a significant portion of the households
received new houses from NALCO. These houses were constructed
by NALCO and are semi-pucca (tinned roof) houses. Regarding the
reason why a significant number of households in other regions did
not receive the houses, the data shows that they were not affected
by the factory in terms of losing home and homestead. The NALCO
constructed houses only for those who lost their houses for the factory
(Table 14).

New House Received from NALCO

If ‘No’, Reason for not receiving

Area

Yes

No

Total

HH Not Affected

Pending

Did Not Lose Home

Mining
(Kapsiput)

0

100

100

52

0

48

Refinery
(Analabadi)

73

27

100

41

4

55

ARMP
(Goudaguda)

40

60

100

22

3

75

Source: Author’s own survey.

Table 14: Details of housing provided by the NALCO (In Percentage).

The data of various sources of drinking water for the sample households in the project area indicate that among water sources, well
and water supply system except mining zone, followed by hand pump,
are the chief sources of water supply. In mining zone stream and pond
are the principal sources of water. In terms of impact of pollution due
to mining on the water sources, the data reveal that water is much
polluted in some zones (cent percent in the mining and zones; 78
percent in the refinery zone; and 55 percent in the ARMP zone) (Table 15).

Source

Impact of Pollution

Area

Well and Water
Supply System

Streams and Pond

Hand Pump

Total

Not Polluted

Polluted

Total

Mining
(Kapsiput)

0

71

29

100

0

100

100

Refinery
(Analabadi)

60

22

18

100

22

78

100

ARMP
(Goudaguda)

65

0

35

100

45

55

100

Source: Author’s own survey.

Table 15: Source of drinking water (In Percentage).

Creation of basic infrastructural facilities is the key for the
displaced population to settle down in the new habitations cohesively
without being disintegrated. NALCO and the Government of Odisha
have promised to create basic infrastructure for the project affected
population when they embarked on commissioning the project. From Tables16 and 17 it may be interpreted that most of the facilities such
as electricity, roads, schools, health centres, drinking water, irrigation
facilities, etc., have been provided by either NALCO or the Government
of Odisha. During our interactions with the respondents in the field,
it was observed that although facilities were provided, access to them
is not universal; for e.g., in the vicinity of the mining area, although
health centres were established by NALCO, all the villagers were not
given health cards, even though they were all indirectly affected by the factory. Primary schools and upper primary schools exist in all the
villages, while 'Girijan Vidya Vikas Kendra' (run by Integrated Tribal
Development Agencies (ITDAs) do not exist in any of the villages - the
people have to go to either Koraput or Semiliguda to avail this facility.
Further, although hospitals (territory level) do not exist in any of the
sample villages. The situation regarding other infrastructure, such as
metalled roads and 'all weather roads', is better in the sample villages.

In tribal and hilly habitations, CPRs play an important role in the
subsistence of the livelihoods of the poor and the marginalized. In particular, these regions, unlike in the plain areas, access and availability
of CPRs to the village communities in terms of basic needs, such as
grazing pastures, ponds, streams, and minor forest produce (from
forests) plays an important role for their livelihoods. Access to these
is usually free and unrestricted, since CPRs are open access resources.
However, from Table 18, it may be observed that though various CPRs
are available in the sample villages, most of them have been affected
by the refinery and ARMP areas. NALCO acquired most of the CPRs
such as common lands, streams and grazing land for laying roads,constructing the conveyor belt, and building colonies, particularly in
the refinery areas. Due to the factory activities, the streams have been
logged and forest access to the community is very much restricted.
In some villages, the streams and canals are contaminated due to
emissions from the plant.

Streams are logged, forest is restricted, and common land totally acquired

Refinery
(Analabadi)

Canal, Streams, village forest, and
grazing lands and graveyard

Yes

NALCO occupied all the common lands streams and grazing lands for the roads,
conveyer belt and R and R colony

ARMP
(Goudaguda)

Canal, stream and forest

Yes

Stream and canal are contaminated due to caustic water and septic water

Source: Author’s own survey.

Table 18: Details of the Common Property Resources (CPRs).

The households usually migrate out in search of employment
when opportunities are not found on a regular basis in their village.
Out migration may be seasonal (short term), medium term, or long
term. The incidence of out-migration mostly for construction and
non-agriculture works was observed only in ARMP zone. The castewise
details of the HHs indulging in out-migration reveal that those
who migrate out are mostly dalits and STs and the nature of payments
received is daily wage (Table 19).

Area

Migration

Type of Work

Place of Migration

Age Group

Caste

Nature of Migration

Terms of migration

Mining
(Kapsiput)

No

---

---

---

----

----

----

Refinery
(Analabadi)

No

---

----

---

----

----

----

ARMP
(Goudaguda)

Yes

Construction and other agricultural works

Urban

15-50

Mostly dalits/STs

Seasonal/
temporary

Daily wage and contracts

Source: Author’s own survey.

Table 19: Details of out-migration in the sample villages.

The data on job benefits offered to HHs by NALCO show that only
in refinery zone affected persons were given permanent employment.
In other villages, no permanent jobs were offered by NALCO.
According to NALCO, jobs were offered only to those villages whose
lands and homesteads were lost. In the process, partially or indirectly
affected villages were not benefitted by NALCO jobs even though they
lost employment opportunities in their native villages. The nature
of jobs offered was also mostly unskilled - like messengers, peons,
helpers, operators, etc. However, since it is government employment,
the monthly income (salaries) given to these job holders is substantial
(Table 20). Although NALCO did not offer large scale permanent
employment, it is offering contract employment in all the villages.
However, the number of HHs getting contract employment varies
across the sample villages [13]. This may be due to the vicinity factor
of these villages to the refinery location. The type of jobs offered, as
in the case of permanent employment, are skilled, semi-skilled, and
unskilled, and the wages offered are uniform across all the villages -
ranging between Rs.180-280 per day while their monthly income works
out around Rs.5,000 to Rs.6,000 (Table 21). The important village
development needs were elicited from the communities and were then
ranked accordingly. It can be seen from Table 22 that drinking water
was accorded number one rank in Kapsiput and Goudaguda villages,
whereas jobs to all displaced families ranked first in Analabadi village.
This means that drinking water is still scarce in these villages. Further,
it is observed that second rank was given to irrigation (Goudaguda),additional water tank (Analabadi), high school (Kapsiput), etc.
Facilities such as health centre, internal roads and roads were accorded
third rank by the communities.

Area

Permanent job in
NALCO

If No-state reason given by NALCO

Nature of Job

Type of Job

MonthlyIncome(Rs)

Mining
(Kapsiput)

No

Jobs were offered to those who have lose home and homestead

-----

-----

-----

Refinery
(Analabadi)

Yes

------

Messengers,helpers, peons, operaters etc.

Semi-skilled and unskilled

5,000-6,000

ARMP
(Goudaguda)

No

Jobs were offered to those who have lose home and homestead

-----

-----

-----

Source: Author’s own survey.

Table 20: Job benefits offered by NALCO.

Area

Contract Job Offered

Type of Job

Average Wage Rate (Rs)

MonthlyIncome (Rs)

Mining
(Kapsiput)

Yes

Skilled, Semi-skilled and unskilled

180 to 280

5,000-6,000

Refinery
(Analabadi)

Yes

Skilled, Semi-skilled and unskilled

180 to 280

5,000-6,000

ARMP
(Goudaguda)

Yes

Semi-skilled and unskilled

180 to 280

5,000-6,000

Source: Author’s own survey.

Table 21: Details of the contract/seasonal employment offered by NALCO.

Area

Villages

Development Needs

1

2

3

Mining

Kapsiput,

Drinking Water

High School

Health Centre

Refinery

Analabadi

Jobs to all displaced families

Additional water tank

Internal Roads

ARMP

Goudaguda

Drinking Water

Irrigation

Roads

Source: Author’s own survey.

Table 22: List of villages and development needs.

The expectations of the affected households from the NALCO are
mostly 'job regularization' for those who are on contract (66 percent
in the mining zones; 65 percent in the refinery zone; and 46 percent in
the ARMP zone), followed by 'job offer for all affected people'. 'Others',
include adequate water facility, access to free education, new houses for
R and R colony, free electricity, monitoring of drainage, cleanliness of
the roads, etc. (Table 23).

Area

Job for all affected
people

Access to Health
Card for all

Job Regularisation

Local Priority for
all works

Others

Total

Mining
(Kapsiput)

19

11

66

0

4

100

Refinery
(Analabadi)

20

4

65

5

6

100

ARMP
(Goudaguda)

20

21

46

6

7

100

Source: Author’s own survey.

Table 23: Households' expectations from NALCO (In Percentage).

Major findings and suggestions

The company has issued health cards to only those affected people,
who got permanent employment in the NALCO. This is very unfair;
NALCO has to issue permanent and free health cards to all the affected
people as well as to the contract/wage employees and their families.

Due to the mining activity the stream water is contaminated; and
due to the conveyor belt, the people are also suffering from sound
pollution. In the refinery and ARMP areas, the surrounding villages
are affected by smoke, caustic water, and fluids. Hence, the water is
contaminated, the agriculture fields' fertility is affected, and crop
production has been affected. Hence, NALCO has to take some more
preventive measures to reduce air, soil, sound and water pollution.

With the emergence of the NALCO mining industry,
the occupational profile of the households has changed from
predominantly farming to NALCO contract/wage employment. Even
though permanent employment in NALCO gives good income in terms
of assured salaries, the contract/wage employment and the income
accrued from it is far from satisfactory. The data in the previous sections
show that NALCO does not take any initiative to involve women in its
works. In this context, it is important for NALCO to appoint a special
recruitment/welfare cell to clear pending employment issues and other
problems, and also monitor contract/wage labour employment.

During 1984-85, NALCO started the Peripheral Development
Programme-the area, which is 10 km from the refinery and mining
areas, is considered as a peripheral area. Under this programme,
NALCO promised to provide all facilities including health, education,roads, drinking water, and infrastructure development (school
building, etc.); but in practice, NALCO failed to provide the above
services satisfactorily to the peripheral area.

Another issue of concern is that NALCO is getting water from
the Kerandi River, which is 8 km away from the refinery, through a
pipeline. Because of the water pipeline, some of the villages have
lost their agriculture lands. In the Goudaguda Village there are two
pipelines here adjacent to this village: one is a caustic soda pipeline and
another is a septic water pipeline. Due leakages in these pipelines, the
caustic mud and septic water flows into the agriculture fields; and as
a result, the fertility of the agriculture fields is affected and in turn the
crop production decreased.

During the land acquisition, NALCO had promised to provide
employment to all the affected persons in the household. However,
NALCO later disagreed to provide employment opportunity to every
affected person in the household. Such unequal distribution of the
employment opportunities created tensions among the households.
This issue becomes clear when one observes that only one person
from each household was offered job; the others are rendered totally
dependent.

Regarding the health status, the data shows that compared to
earlier times, health infrastructure has developed, but the quality of the
services is very poor in both government and NALCO hospitals. It was
a pity that the affected households became addicted to certain social
evils such as liquor and drugs (particularly the youth) as a result of cash
compensation. It was found that in the Analabadi rehabilitation colony,
most of the employees are addicted to alcohol and tobacco chewing, etc.,
and due to these addictions many people died at an early age.

Another issue of concern in the study area is that the percentage
of illiteracy is very much high, It is clear that the people are not aware
of the importance of education and its benefits. However, the schools
are not functioning properly. Therefore, child education is adversely
affected. Sadly the parents do not bother about the school. If NALCO
provides free education to the affected villages, then there will be much
more benefit to the girl child.

Due to continuous deforestation the livestock are adversely
affected, and there has been a decline in their population. NALCO does
not provide any skill development training to the affected people for
the creation of alternative livelihoods.

It was mentioned in the text that technical education such as ITI
diplomas and a little higher education is nearly absent in the NALCO
areas, thus making the local people unfit ineligible to become skilled
workers in the NALCO. In this context, it is important for NALCO to
contemplate the imparting of skills/trainings to ready the local people
for better opportunities.

Conclusion

The NALCO, with its huge profit base, could have done much
better to these marginalized people. The data shows very clearly that
the most vulnerable sections, viz. the Scheduled Tribes and Scheduled
Castes, who have lost lands, houses, and other assets, were not able to
get back their livelihood status as a result of the cash compensation
policy. The other infrastructural facilities promised by NALCO were
not adequately provided, and there are still loose ends in the whole
approach.

Though NALCO has undertaken some initiatives for the affected
people in terms of providing jobs, shelter, free education, and free health
and infrastructure including community hall, school building, roads
and drainages, etc., there is still a feeling among the affected population
that problems such as job security to all, shelter, access to free health
and education facilities, basic amenities, and other infrastructure
facilities, remain. It is time for the NALCO to rethink about the
affected people's problems and conduct some welfare activities for
them in terms of livelihoods promotion, health and education, skill
development activities, infrastructure facilities, etc.